Author: Isabelle Docto

Canada’s GST holiday is here. In November, Prime Minister Justin Trudeau announced the two-month GST cut on groceries and other items heading into the busy and costly gift-giving season. “In just a few days, essential items will be tax-free in Canada,” Trudeau shared on Tuesday. “Takeout for dinner. Your morning coffee. Diapers and winter snow pants for your kids. All tax-free for the next two months.” In just a few days, essential items will be tax-free in Canada. Takeout for dinner. Your morning coffee. Diapers and winter snow pants for your kids. All tax-free for the next two months. That’s going to make life cost a little less. — Justin Trudeau (@JustinTrudeau) December 10, 2024 Some of the highlights from the list of products include groceries, beer and wine, restaurant meals (dine-in, takeout, or delivery), essential childcare items, and even Christmas trees. You can find the full list of items eligible for the GST cut here. The tax break started on Saturday, December 14 and will end on February 15. The government estimates that the policy will provide $1.6 billion in federal tax relief. Canadians are grappling with unaffordable housing and high food costs, so much so that this international student has resorted to living in his car instead of renting an apartment. Many Canadians are also skipping meals or cutting back on groceries because they can’t afford food. If you’re wondering how much this could actually shave off your grocery bill, Daily Hive calculated the estimated savings here. Trudeau not providing “substantial” relief This measure comes after the NDP vowed to eliminate the GST from everyday costs like heating, cell phone bills, internet, groceries and children’s needs. The Liberal government’s tax break does not apply to monthly bills. NDP Leader Jagmeet Singh issued a statement after the initial announcement, saying the Liberal government’s decision to pause the GST is in response to their demands. “The NDP is delivering a winter tax holiday to Canadians. The prime minister’s office just informed us that he’s caving to our Tax-Free-Essentials campaign — partly,” said Singh. He added that the policy is “far from the substantial and permanent relief” the party is pushing for. “As usual, the Liberals are letting people down with their choice to make this a short-term tax holiday on only some items,” stated Singh. Despite this, the NDP voted for the GST break. Singh said the party would continue to campaign hard to scrap the tax on daily essentials and monthly bills permanently. Opposition says GST move a “tax trick” Conservative Party Leader Pierre Poilievre also responded to Trudeau’s GST holiday, calling it a “two-month, temporary tax trick.” Poilievre noted that this would not “make up for the permanent quadrupling carbon tax on heat, housing, food, and fuel, and all to save Justin’s job and Jagmeet’s pension.” He added that his party is calling for alternative solutions, like permanently axing the carbon tax and taking GST off of new homes.